What happened to Lucent Technologies?
Doug Pitt In 2006, Lucent Technologies, once an elite American technology company whose stock price had risen to $84, creating a market value of $258 billion, barely avoided bankruptcy by selling out to Alcatel, a second-tier French telecommunications company.
Is Lucent a separate company from AT&T?
Although Lucent already operates in large part as an independent company with its own chief executive and employees, it won’t be completely broken off from its parent until sometime later this year, when AT&T; shareholders receive the 80% of Lucent not sold to the public.
When did Lucent acquire Ascend Communications?
With the acquisition of Ascend Communications in 1999, Lucent became the leader in both voice and data for service providers. An estimated 70 percent of the world's Internet traffic traveled over Ascend equipment in 1999.
Why did Bell Labs spin off Lucent?
Bell Labs brought prestige to the new company, as well as the revenue from thousands of patents. At the time of its spinoff, Lucent was placed under the leadership of Henry Schacht, who was brought in to oversee its transition from an arm of AT&T into an independent corporation.
What did Lucent Technologies become?
Lucent Technologies, Inc. Lucent was merged with Alcatel SA of France on December 1, 2006, forming Alcatel-Lucent. Alcatel-Lucent was absorbed by Nokia in January 2016.
When did Lucent spin off from AT&T?
September 30, 1996On September 30, 1996, Lucent became independent of AT&T when AT&T distributed to its shareowners all of its Lucent shares. Once Lucent was separated from AT&T, it began to win large equipment contracts from telecommunications carriers who were AT&T's rivals.
What happened to my Lucent stock?
What happened to my stock as a result of the merger with Alcatel? A. Lucent Technologies merged with Alcatel to form Alcatel-Lucent on November 30, 2006. Former Lucent shareowners received 0.1952 of an Alcatel-Lucent American Depositary Share, or ADS, for each share of Lucent common stock that they owned.
Who bought Lucent Technologies?
Alcatel SA will acquire U.S.-based Lucent Technologies Inc. in a $13.4 billion (11.1 billion euros) stock swap to form a stronger player in the fiercely competitive telecom equipment market, the companies announced Sunday.
Is there still a Lucent Technologies?
Today, Lucent remains one of the leading providers of telecommunications equipment throughout the world. And, with the help of its research and development arm, Bell Labs, it continues to develop equipment that transports voice and data in record speed.
Does Alcatel-Lucent still exist?
The Alcatel-Lucent brand is abolished.
What is Lucent stock worth today?
Performance OutlookPrevious Close28.12Ask28.70 x 0Day's Range28.06 - 28.8652 Week Range21.00 - 29.80Volume918,8413 more rows
Why did Lucent go out of business?
In a short ten years, Lucent crashed from being the profitable sole-source AT&T R&D subsidiary to a failing independent company. Employees were shed by the thousands, dropping from 106,000 to fewer than 35,000. Over 70,000 American jobs disappeared from the company.
How much is a share of Lucent Technologies worth?
Price/Earnings ttm 42.88.
Who lost Lucent the decline of America's telecom equipment industry?
Who Lost Lucent?: The Decline of America's Telecom Equipment Industry. As America transitions to 5G wireless networks, the U.S. intelligence community sees the Chinese telecom giant Huawei as a systemic security risk. In response, President Trump has banned the use of Chinese 5G equipment in U.S. networks.
When was Lucent Technologies founded?
September 30, 1996Lucent / Founded
How much did AT&T sell Lucent?
In Wednesday’s offering, AT&T; sold 112 million shares of Lucent for $27 each. The shares were sold to Wall Street firms Wednesday and will begin to trade on the New York Stock Exchange today. Analysts have been generally upbeat about the stock offering, and strong investor demand is expected to drive the shares somewhat higher.
How much did Lucent lose in 1995?
Including restructuring costs tied to planned major layoffs, Lucent reported a loss of $867 million for 1995 on revenue of $21.4 billion, down from a profit of $482 million and revenue of $19.7 billion for the year before.
Why did AT&T spin off?
AT&T; moved to spin off the Murray Hill, N.J.-based unit in large part because independence was becoming increasingly important in a deregulated and competitive telecommunications market. The Baby Bell telephone companies, for example, now among Lucent’s largest customers, had become reluctant to buy their phone equipment from AT&T; as the telephone giant positioned itself as a competitor in the local phone business.
Is Lucent a wired or wireless company?
Last year, 23% of its sales were from foreign customers, up from 19% for 1993. And the company is one of just a few able to build both wireless and wire-line communications systems that can serve an entire nation.
Is AT&T up for bid?
As a result of its new independence, a major chunk of the company’s business--now guaranteed from AT&T--will; be up for bid. Its erstwhile parent, the AT&T; phone service company, accounts for about $2 billion in annual sales. AT&T; has promised Lucent $1 billion in business annually for the next three years; after that, it’s on its own.
Is Lucent a spinoff of AT&T?
Lucent Technologies Inc., AT&T;'s new telecommunications equipment spinoff, made its first big splash as an independent company Wednesday by completing the largest initial public offering ever recorded in the U.S.
When did Lucent start its new ventures?
Lucent formed its New Ventures Group in 1996 to nurture small companies, make venture capital investments, and spin out entrepreneurial firms that could later go public. The New Ventures Group was instrumental in determining which Bell Labs inventions became marketable products.
What companies did Lucent acquire?
During 1998 Lucent acquired the following companies: Prominet, a participant in the emerging Gigabit Ethernet networking industry, for $200 million in stock; Optimay GmbH, a German-based software developer for chip sets to be used for Global Systems for Mobile Communications cellular phones, for $65 million; Yurie, a provider of asynchronous transfer mode (ATM) access technology and equipment for data, voice, and video networking, for $1 billion; SDX, a U.K.-based provider of business communication systems, for $200 million; MassMedia, a developer of next-generation network interoperability software that manages connections across data, voice, and video networks; LANNET, an Israel-based supplier of Ethernet and ATM switching solutions, for $117 million; JNA, an Australian telecommunications equipment manufacturer, reseller, and system integrator; Quadritek, a start-up developer of next-generation Internet protocol (IP) network administration software solutions, for $50 million; and Pario Software, a maker of network security software. By acquiring a large number of data-network equipment and software companies, Lucent was positioning itself to compete with companies such as Cisco Systems in building multiservice networks that could support voice, video, and data traffic.
How much did Lucent make in 1997?
1997: After reporting a loss in 1996, Lucent becomes profitable with net income of $150,000.
Why did Lucent lose money in 2000?
Lucent attributed its shortfall for the first quarter of 2000 to its inability to meet demand for new optical networking products and delays in customers deploying their new network equipment. Analysts noted that Lucent had misread the shift in demand to fiber optics, which provided more bandwidth, and then reacted too slowly to stop its customers from defecting to chief competitor Nortel Networks.
What is a lucent?
The third would be Lucent Technologies, a company focused on network equipment, switching devices, and business communications hardware. Lucent was incorporated in Delaware in November 1995.
When did Lucent become independent?
On September 30, 1996 , Lucent became independent of AT & T when AT & T distributed to its shareowners all of its Lucent shares. Once Lucent was separated from AT & T, it began to win large equipment contracts from telecommunications carriers who were AT & T's rivals.
What is Lucent's strategy?
Lucent's strategy is to meet its customers' needs by offering an end-to-end solutions platform. This strategy brings together the core products of switching, transmission, software, messaging and optoelectronics (including microelectronic componentry) with the new portfolio offerings obtained through strategic acquisitions as well as the research and development of Bell Laboratories.
When did Lucent cut health care?
In 2002, Lucent began making significant cuts to the health care and retirement benefits of many of its 125,000 retirees. Although Lucent contends these and future cuts are necessary for its survival, they have nevertheless spawned several lawsuits and generated a continuing flow of negative publicity in the news media.
Why did AT&T spin off its equipment manufacturing business?
One of the primary reasons AT&T; chose to spin off its equipment manufacturing business was to permit it to profit from sales to competing telecommunications providers ; these customers had previously shown reluctance at purchasing from a direct competitor. Bell Labs brought prestige to the new company, as well as the revenue from thousands of patents.
What happened to Lucent Technologies?
What Really Happened to Lucent Technologies? Doug Pitt. In 2006, Lucent Technologies, once an elite American technology company whose stock price had risen to $84, creating a market value of $258 billion, barely avoided bankruptcy by selling out to Alcatel, a second-tier French telecommunications company.
How much did Lucent stock drop in 2002?
In only six years its stock price rose from $7.56 per share to a high of $84 after multiple stock splits, and then crashed to a 2002 low of 56 cents. Lucent’s market value dropped to less than $2 billion, not enough to meet two month’s payroll expense. Individuals’ company 401Ks sank to near worthlessness (divided by twelve). Retirees had to go back to work. Unexercised stock options became wallpaper.
Why did McGinn put Lucent under such capital and cash flow pressure?
It was only when McGinn put Lucent under such capital and cash-flow pressure by virtue of irresponsible, reckless CLEC financial deals that it had no chance for success. These deals were not those of marketing subordinates far down the food chain. These were deals that by their very structure required approval at the top, and across multiple areas.
What is the Lucent story?
Lucent’s story exposes a national affliction destroying America’s future. It speaks to the contemporary American world, a harbinger of many other company futures. Perhaps the global future. No analysis to date fully describes the forces that drove Lucent to the brink.
Why did McGinn and his subordinates get fired?
Experienced, knowledgeable subordinate executives were run off, retired or fired, because they were strong enough to hold the traditional line and knew better than to go along with the new folly.
What fueled the Lucent bubble?
The Clinton era Telecom Reform Act of 1996 fueled the dotcom bubble that led to Lucent’s demise. Clinton era legislation deregulating banking and investment fueled the subsequent mortgage bubble. Subprime only contributed to the problem slightly.
Why does Wall Street blind itself to the truth?
Wall Street blinds itself to the truth to keep the play going, when in more rational circumstances they would disclose legitimate concerns. Instead, Wall Street continues to encourage unrealistic expectations. Corporate executives bend the truth accordingly to meet those expectations.
Who was the CEO of Lucent?
The vision of Richard McGinn, who became CEO of Lucent in 1997, was to be “a high-tech growth company in an industry historically plagued by slow growth and gradually evolving product lines.” 35 Roth was also convinced that Nortel needed to be more like internet companies.
How much did Lucent make in 1999?
The company told its shareholders that these numbers would “likely grow as technological advances and deregulation continue to expand the global market.” 12 It also expected to grow because it “was generating 23 percent of its revenues outside the U.S., but it held only 3 percent of the non-U.S. market.” 13 In 1999, Lucent was the world’s largest telecommunications equipment company, earning $38.3 billion in revenue, making $4.8 billion in profits, and employing 153,000 workers, while controlling more patents than any other company.
What were the two largest telecom companies in the 1970s?
After all, in the 1970s the two largest telecom equipment manufacturers were U.S. companies: Western Electric and ITT. Even in the late 1990s, the two largest were still based in North America: Lucent and Nortel (headquartered in Canada but employing tens of thousands of workers in the United States).
Why did AT&T sell its foreign manufacturing subsidiary to a smaller American firm?
Because of pressure from the antitrust bureau, in 1925 AT&T sold its foreign manufacturing subsidiary to a smaller American firm, International Telephone and Telegraph (ITT). Led by its charismatic founder, Colonel Sosthenes Belm, ITT grew to one of the world’s largest multinationals.
What was the market of AT&T in 1900?
As telephony grew—faster in America than anywhere else—AT&T grew. By the turn of the century, AT&T and Western Electric dominated the U.S. market. By 1900, Western was manufacturing in Austria, Belgium, Canada, China, Germany, France, Italy, Japan, the Netherlands, Russia, and the United Kingdom. And by 1913, it dominated the global market, holding 59 percent of the global market for equipment.
Why was Northern Telecommunications established?
Northern Telecommunications was established by Western Electric to serve the Canadian telecommunications market, in part because of the high tariff wall the Canadian government had erected. 9 But again, because of pressure from the Department of Justice, Western was forced to sell off Northern to Bell Canada.
How long did it take for AT&T to break up?
Perhaps more than any single area of government action or inaction, a strong case can be made that it was seventy-five years of relentless effort by the federal government to break up AT&T that was the principal factor in the industry’s downfall.
